Inconsequential Trading Day With Some MBS Underperformance

Today was remarkably unremarkable.  Volume and volatility were low, in general.  There were no significant economic reports.  There were no juicy market movers.  The biggest instance of drama was an afternoon slump in MBS prices (Treasuries held steady) likely a byproduct of the eviction moratorium extension (which has a marginal impact on MBS).  In total, it made for less than an eighth of a point of weakness and it is not likely to be an ongoing market mover.

Econ Data / Events

  • Fed MBS Buying 10am, 1130am, 1pm

  • Factory Orders 1.5 vs 1.0 f'cast, 2.3 prev

Market Movement Recap
09:01 AM

Flat to very slightly weaker for most of the overnight session.  Relatively light volume.  Buyers showing up with domestic hours.  10yr down 1bp at 1.17% and MBS up 1 tick (0.03).

01:32 PM

Very quiet day both in terms of volume and volatility.  Bonds ignoring stock rebound.  10yr yield still barely positive at 1.174.  UMBS 2.0 also barely positive at 102-07 (102.22).

03:45 PM

The placeholder trading session is winding down now after a small scare for MBS prices (nearly an eighth of a point of weakness after the last update, but stabilizing now).  Treasuries didn't experience the same speedbumps and are at the exact same levels (1.174).